logo

Strategic Analysis of Burberry PLC - Report

   

Added on  2020-06-04

13 Pages3950 Words281 Views
STRATEGIC ANALYSIS

Table of ContentsINTRODUCTION...........................................................................................................................1Question 1: Strategic Issues.............................................................................................................1Issue 1 Pestle..........................................................................................................................1Issue 2: Porter's five forces.....................................................................................................3Issue 3: Internal Competence.................................................................................................4Question 2: Strategic capability and advantage...............................................................................4CSFs.......................................................................................................................................4Unique resources of the business firm....................................................................................5Unique capabilities of luxury fashion industry......................................................................5Various advantages of CSFs:..................................................................................................6Porter's Generic model:..........................................................................................................6Evaluation Suitability of strategy to environment:.................................................................7Evaluation of Acceptability of the strategic plan of Burberry to key holders:.......................7Evaluation of feasibility of the action of plan in external marketplace:.................................8Improvement to strategies:.....................................................................................................8CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10

INTRODUCTIONThe purpose of this report is to highlight the strategic issues faced by BurberryOrganisation. Strategic issue is a critical challenge which affects organisation's missions, values,stakeholders, resources, structure, processes, service level and management (Burberry - Statistics& Facts. 2017). And strategic issue analysis means a set of method which is proposed to resolvethe strategic issues through forming a strategic issue information model. This formation is donethrough joining manager analyst teamwork approach together (Laudon and Traver, 2013). Everybusiness has a strategic objectives, these goals are important for the current and future health ofthe organisation. Objectives differs on the basis of priority given to them. This references is onthe basis of certain analysis like PESTLE, Porter's 5 Forces and Internal examination of theorganisation. Burberry PLC is a British luxury fashion house. It is ranked 8th position under top 15Brand contribution (BrandZtm). It is popular for selling trench coats and its fashion houses has amain focus on ready-to-wear outerwear, fashion accessories, fragrances, sunglasses andcosmetics. It was established in 1856, that time it was focusing on outdoor attires but later itmoves towards high fashion market (Reports. 2017). Currently the value of Burberry's personalluxury good in market is around 249bn EUR and global revenue is 2.77bn GBP (Büyüközkan,Çifçi and Güleryüz, 2011). It produces and distributes luxury outerwear for both men and womenacross the world. But major part of its revenue is generated through accessories. It's adjustedannual profit before tax as at the end of the year 31st March, 2017 is £462m (BURBERRY annualreport). In this report, key strategic issues facing by Burberry is been discussed. Critical successfactor's of Burberry like selling tartan, celebrity endorsements and tactical product placementshas been explained in this report. The report begins with PESTEL, porter's 5 forces model andInternal analysis of Burberry.Question 1: Strategic IssuesIssue 1 PestleIt is a critical challenge which affects an organisation's missions, values, stakeholders,resources, processes, management and product services. Hence the three key strategic issues ofBurberry is explained below with the help of the diagrams:1

PESTLESource: Google Images, ©2016Economically, fanciful “luxury” itself has been somewhat hijacked and disappearanceinto knock-off ordinariness and aim commoditization. Burberry with other top brands like Pradaand Louis Vuitton, must compete sharply for getting high valuable customers in this competitivemarket. Sales management strategies attracts economic growth of Burberry through brandsurvivability in this challenging market (Yoo and Lee, 2011). One of the major economic challenges faced by Burberry is raising its capital becausegovernment has directly controlled over its financial institutions by law. But still Burberry canovercome from this situation through moving its business in Asian pacific nations like china,because there is no income tax on interest on bank deposits (ANNUAL REPORT 2016/17. 2017). Various economic factors like changes in inflation rate, exchange rates, taxes and dutieson export and import of products largely influence the internal functionality of the of the firm.The company should act responsibly towards these economic aspects of external environment inorder to conclude to the efficient and profitable strategic plan in action. The Burberryprofitability can be affected by the financial crisis or higher debts in the country due to which2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Strategy Assigment (pdf)
|19
|4810
|70

Business Strategy for Burberry: Analysis of Macro and Internal Environment
|15
|4049
|70

Strategic Management Plan for Burberry: Analysis of Macro and Internal Environment, Stakeholder Matrix, and VRIO Model
|16
|4602
|302

Business Strategy
|16
|4792
|51

Business Strategy for Burberry: Analysis of External and Internal Environment and Strategic Models
|13
|4240
|278

Business Strategy for Burberry: Models and Analysis
|13
|4235
|264